The Olympic spirit

Who said this about the Olympics?

The sportive, knightly battle awakens the best human characteristics. It doesn’t separate, but unites the combatants in understanding and respect. It also helps to connect the countries in the spirit of peace. That’s why the Olympic Flame should never die.

None other than that icon of world peace, Adolf Hitler. The next two scheduled games, 1940 and 1944, were cancelled while he extended the “spirit of peace” around the globe.

The Nazis hijacked the 1936 Olympic Games as a massive PR exercise. The torch relay doesn’t date back to ancient Greece at all. It originates from Nazi pageantry — introduced by them in 1936 in an attempt to draw a connection between ancient Greek civilization and the Third Reich. The 1936 medal count illustrates their success in whipping up nationalistic fervor.

1936 Olympics Medal Count

Source: Wikipedia

Other countries have since attempted to emulate the Nazi feat, pouring millions of dollars into sports development in the hope of improving their medal tally. The medal count, given such prominence by international media, goes against the spirit of the ancient Olympiads, whose focus was on athletes competing against other athletes. Countries competing against each other evokes the exact opposite of the spirit of peace.

In addition, we have commercial sponsors attempting to align themselves with the Olympic Games. Will Anderson, host of Gruen Sweat, a four-part ABC series, sums this up:

The London 2012 Olympics — where the world’s most competitive brands come together to fight for glory and gold — mostly gold …… The orgy of selling starts before the games even begin.

The spirit of the games was expressed by Pierre de Coubertin, founder of the modern Olympics:

The most important thing in the Olympic Games is not winning but taking part;
the essential thing in life is not conquering but fighting well.

To find the true spirit of the Olympics, look no further than the athletes. Not the medal count or the sponsors.

In every act observe the things which come first and those which follow….
If you do not, at first you will approach it with alacrity….
but afterward you will be ashamed.
A man wishes to conquer the Olympic games….
But observe the things which come first and the things which follow….
You must do everything according to the rule:
eat according to strict orders,
abstain from delicacies,
exercise yourself at appointed times, in heat and cold,
you must not drink cold water,
nor wine as you choose….
And sometimes you will strain the hand,
put the ankle out of joint,
swallow much dust,
sometimes be flogged,
and after all this be defeated.
When you have considered all this,
if you still choose, go to the contest.
If you do not — you will behave like children,
who at one time play as wrestlers, another time as flute players….
but with your whole soul you will be nothing at all.

~ Greek sage and Stoic philosopher Epictetus (AD 55 – AD 135)

Olympic highlights: Oscar Pistorius runs second in Mens 400m heat

South African athlete Oscar Pistorius, who had both of his legs amputated below the knee when he was a child, became the first double-amputee to compete in the Summer Olympics. Running in the first heat for the Men’s 400 meters, he finished second, advancing to the semifinals. Unfortunately he failed to make the final, but his effort is truly inspiring.

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Olympic highlights: Ye Shiwen wins gold in 400m IM

China’s 16 year-old Ye Shiwen swims an amazingly fast final 50 meters to beat Australia’s Alicia Coutts in the Women’s 400m Individual Medley.

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Olympic highlights: Michael Phelps wins his 17th gold medal in the 100 Butterfly

Michael Phelps wins his 17th and penultimate gold medal in the 100 Butterfly:

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Phelps ends his Olympic career with 22 medals, 18 of them gold.

Olympic highlights: Le Clos touches out Michael Phelps in Mens 200m butterfly

Chad Le Clos touches out Michael Phelps in Mens 200m butterfly:

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8Qu8DkzVevTKGcT2sE14i-OJ6H5N_krZBNR83f4ErENsWYC8YrM7ZwFw2mcpRuC2uQMv1Ms7QQbAz-cpw6wwUKGONHZGD2lEW_5HD_KVv16QFUSv00D9w6sMbtO9XuvfnszCN_AtDI38frgI_cqPsEkhnJ7tbazpvleTg_56WnPFD8TLBsG2l2_pXE5KBrdHLccGlYeCDS9CelXqDNE-qwFvhGMXVaD_Lhz3Sy4WskyTND_o4uLCWd74orR2WfBwNGHwGaDKUDarsPZwK5w_Dh3EfUgHrSo0cK8GjI7GsHH7a38nl8nDDwt9-W-ukiCORBGy6ROUpvI3CnZJ_jbkQM0PStUgnytihd1f5S93svZH34rIzJ2k36Z6SCiaXgY2pbCe6bfkl7D-CBz6ttymOPuy1Sb7w-xUvmjbvdKoKe-_BHJYyqTxhbndD8HiSM8uS95NN-c_Adtw869Y2BPHhSYQxjNjQpHpiznlsBcHk0x8xkllQFOidhqAKOq5PCDWMz-FH0NGsCc9z24Nv4PXpfCzD0R1Z5mh3UFZtFNVvPyXuck3NqSopNn5QCNX_pAJCfiMUS0t9Rg4yRagPVdZnroHYJymFpYEYaSY8I1LwWXMs94mM2EVcwinJXpyzWhf1XtHI9kKSskwdwMosgjAwU7QWr2bZp2PobdWu7XOJVAh1xn_66Qg-2aTWDuX097X_mtkZEXjg999hXo7X_5o3P0K9GKn2wWybz7fwPd7clYLhGXvRM9aSZy3Hq9BLzUdJQBHIhb4WWED1PBOSs73uM_WdPCVzUeO_NEWdz4FH2PVh-aHw7jgWIbhHw_cJarpo_bm5iX3-fdbA1sxg9zpcGr3J94hjCVivrS_QQ9ZC37GXj3EoUWqBQqb4dU4xQQga2NBL3KoqE-ErKdUQaZgzfcJTivmOED6IUu00T7TN8LQFgOTMcbrXhmIw**%26docUrl%3Dhttp%253A%2F%2Fwww.businessinsider.com%2Fmichael-phelps-silver-200-meter-butterfly-2012-7%26loadStartTime%3D1343763392560]

Olympic highlights: Mens 4x100m freestyle relay

Highlight of the Olympics so far is France’s performance in the Mens 4x100m freestyle relay:

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The Olympic Contradiction – NYTimes.com

DAVID BROOKS: Dancers, especially at the opening ceremony, smile in warmth and friendship……..After the opening ceremony is over, the Olympics turn into a celebration of the competitive virtues: tenacity, courage, excellence, supremacy, discipline and conflict.

The world, unfortunately, has too many monomaniacs….One [political] faction champions austerity while another champions growth…….The right course is usually to push hard in both directions……to thrive amid the contradictions.

via The Olympic Contradiction – NYTimes.com.

Falling Interest Rates Destroy Capital | Keith Weiner | Safehaven.com

The guiding principle of accounting is that it must paint an accurate and conservative picture of the current state of one’s finances. It is not the consideration of the accountant that things may improve. If things improve, then in the future the financial statement will look better! In the meantime, the standard in accounting (notwithstanding the outrageous FASB decision in 2009 to suspend “mark to market”) is to mark assets at the lower of: (A) the original acquisition price, or (B) the current market price.

There ought to be a corresponding rule for liabilities: mark liabilities at the higher of (A) original sale price, or (B) current market price. Unfortunately, the field of accounting developed its principles in an era where a fall in the rate of interest from 16% to 1.6% [1981 to 2012] would have been inconceivable. And so today, liabilities are not marked up as the rate of interest falls down.

via Falling Interest Rates Destroy Capital | Keith Weiner | Safehaven.com.
Comment:~ Keith Weiner makes an interesting point. Consider two companies. Both have liabilities of $500, but one pays interest at 5% and the other at 10% a year. The balance sheet of the company paying 10% would reflect a greater liability if valued at current interest rates. The counter-argument is that balance sheets often reflect historic costs and companies are more often valued using earnings/cash flow that would recognize the difference in interest charges.